BEAVERTON, Ore. – August 15, 2023 – Gurobi Optimization, LLC, the leader in decision intelligence technology, now supports the innovative price optimization work of energy trader SESCO Enterprises.
SESCO uses machine learning models to predict energy demand and production forecasts. These outputs simulate energy market dynamics and become inputs to the sophisticated optimization models SESCO has built to determine optimal bid pricing at auction.
“The unique thing about electricity markets is that prices aren’t really determined by people buying and selling in an order book. Next-day prices are determined at the ISO auction, where clearing prices are often set by the outcome of an optimization solve — typically using tools like Gurobi,” explains Dylan Modesitt, Chief Investment Officer of SESCO. “So using the partial information we have, we try to determine what the optimal pricing would be.”
After finding that most commercial solvers could not solve their production-sized models — which can contain millions of variables and constraints — SESCO took their problems to Gurobi.
“I don’t think there was ever really a doubt that we would be using [Gurobi] to solve models of this size,” Modesitt explains. “We tried to build our models in the most cost-effective way, but when it came time to actually solve, there was really no other choice. Other solvers couldn’t keep up.”
Although the SESCO team is still in the early stages of using Gurobi to trade in a production context, they believe it will be a central part of their work going forward.
“Gurobi has become absolutely essential to our operations,” says Modesitt. “If there is one software or subscription that I would retain, it would be Gurobi over pretty much anything else that we pay for. I think it’s become the most important part of our trading.”
Gurobi is equally excited to be the company’s solver of choice.
“We’re very proud to be supporting the innovative work of SESCO, and we look forward to seeing how our solver will continue to shape their business outcomes in the future,” says Duke Perrucci, CEO of Gurobi.
To learn more about how Gurobi has helped SESCO optimize energy prices and maintain consistent above-market returns, read the complete SESCO case study.
About Gurobi Optimization
With Gurobi’s decision intelligence technology, you can make optimal business decisions in seconds. From workforce scheduling, portfolio management, and marketing optimization, to supply chain design, and everything in between, Gurobi identifies your optimal solution, out of trillions of possibilities.
As the leader in decision intelligence, Gurobi delivers easy-to-integrate, full-featured software and best-in-class support, with an industry-leading 98% customer satisfaction rating.
Founded in 2008, Gurobi has operations across the Americas, Europe, and Asia. Over 2,500 global customers across 40+ industries run on Gurobi, including SAP, Air France, and the National Football League, as well as over half of the Fortune 10 and 70% of top global tech companies. For more information, please visit https://www.gurobi.com/ or call +1 713 871 9341.
Contact
Nell-Marie Colman
(540) 952 9719
Gurobi Optimization
colman@gurobi.com
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